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Houston TX
Legendary Market Wizard
Experience: Advanced
Platform: TT Stellar & Tradestation
Broker: Primarily Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,247 since Dec 2013
Thanks Given: 4,591
Thanks Received: 10,545
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CME has a new whitepaper out Trading Energy Calendar Spread Options
Calendar Spread Options (CSOs) are options on the spread between two different futures expirations. The Energy futures term structure represents the time value of Energy market variables such as storage costs, seasonality, and supply/demand conditions. Calendar Spread Options provide a leveraged means of hedging against, or speculating on, a change in the shape of the futures term structure.
CME Group has a diverse product offering that includes Crude Oil, Natural Gas, and Refined Products CSOs. This article illustrates the main characteristics of CSOs and their applications in the Energy markets
https://www.cmegroup.com/trading/energy/trading-energy-calendar-spread-options.html
https://www.cmegroup.com/trading/energy/files/trading-energy-calendar-spread-options.pdf
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